2009 (11) TMI 837 - HC - VAT and Sales Tax

Whether the respondent, without giving sufficient opportunity of hearing to the petitioner, had passed the impugned order, dated October 19, 2009, in TNGST No. 4821189/2003-04? Held that - In view of the submissions made by the learned counsels appearing for the petitioner, as well as the respondent, the impugned order, dated October 19, 2009, made in TNGST No. 4821189/2003-04, is set aside, leaving it open to the respondent to pass appropriate orders, pursuant to the remand made by the respondent, dated May 11, 2007 and October 10, 2007, made in A.P. Nos. 276 of 2006 and 182 of 2007, respectively, within a period of twelve weeks from the date of the appearance of the petitioner and on his production of the necessary records, including the books of accounts, relating to the assessment year 2003-04.

Summary

Issues:
1. Violation of principles of natural justice in passing an order without issuing a show-cause notice.
2. Allegations of insufficient opportunity of hearing to the petitioner.
3. Request for setting aside the impugned order and directing a fresh assessment with proper opportunity for the petitioner.

Analysis:

1. The petitioner, a dealer in filament yarn, challenged an order of assessment passed under the Tamil Nadu General Sales Tax Act, 1959. The petitioner contended that the revised assessment, which included a penalty, was made without issuing a show-cause notice, thus violating the principles of natural justice. The petitioner had previously appealed the original assessment, and the Appellate Assistant Commissioner had remanded the matter for fresh consideration, emphasizing the need to address the petitioner's contentions and review the books of account. Despite this, subsequent assessments were made without adequate opportunity for the petitioner to present their case.

2. The petitioner argued that the respondent had not provided sufficient opportunity for a hearing, as required by law. The petitioner highlighted that they had not received earlier summons for hearings, and when they finally received one, they were unable to attend due to illness. The petitioner requested the court to set aside the impugned order and direct the respondent to conduct a new assessment for the taxable turnover of the relevant year, ensuring the petitioner's full participation and compliance with procedural requirements.

3. Considering the submissions of both parties, the court set aside the impugned order and instructed the respondent to reevaluate the assessment within twelve weeks from the petitioner's appearance, allowing the petitioner to present necessary records and books of accounts for the assessment year 2003-04. The court's decision aimed to rectify the procedural lapses and ensure that the assessment process adhered to the principles of natural justice and provided adequate opportunity for the petitioner to present their case effectively. The writ petition was disposed of with these directions, without imposing any costs on the parties involved.